Transaction Management System and Method

REFERENCE TO RELATED APPLICATION

0001This application is a Continuation in Part of U.S. Non-Provisional Application No. 13/277,529, filed Oct. 20, 2011.

FIELD OF THE INVENTION

0002This application relates generally to managing transactions and more particularly to systems and methods for electronically managing transactions.

BACKGROUND OF INVENTION

0003The field of processing of commercial transactions, such as retail purchases, impinges upon convenience for both vendors and purchasers. Currently, the most widely used system utilizes a cash register located at the point of sale. A clerk enters pertinent data into the cash register, such as the nature of merchandise being purchased, the price, the quantity or weight of the merchandise, and the like. Payment may be made electronically using credit or debit cards or the like, as well as by cash or check. A paper receipt is typically generated following payment.

0004Electronic processing of payment may be made, using wireless and hardwired telecommunications systems. This processing is increasingly being done over the internet. While point of sale transactions include the use of the internet for the purposes of processing credit or debit card payments, these transaction still frequently require physical cards, physical receipts and the like. Therefore, there is a significant need to further manage these transactions electronically to enhance security, increase the speed and eliminate the need for physical items such as plastic credit or debit cards, paper receipts, etc. Furthermore, electronic handling of the entire transaction may be extended to financial support institutions such as banks and their associated Automated Clearinghouse systems, the Federal Reserve System, and the like.

SUMMARY OF THE INVENTION

0005The present invention contemplates an integrated, wireless system for managing most if not all informational aspects of a commercial transaction to be performed and completed, including participation of financially relevant entities not immediately participating at the point of sale. This is done using a wireless, portable, internet enabled telecommunications device by the consumer or purchaser. Once a transaction is entered, many functions which are ordinarily unseen to the purchaser may automatically be performed, such as transferring payments from an asset account or a credit account. Record keeping appropriate for both the vendor and the consumer may be automatically generated, with reports transmitted wirelessly to memory of data processors of either of these parties. The system may include transfer of funds from a bank or a credit line, essentially resulting in virtual generating and handling of checks for example. The system may integrate peripheral aspects of commercial transactions, such as factoring in discounts, implementing promotions, managing installment sales, generating virtual gift cards and coupons, and others.

0006The system may automatically initiate functions performed after the point of sale by involved parties and institutions, using generally utilized telecommunications systems including the internet.

0007The system may incorporate participation in social networking sites. The system integrates support functions such as archiving, encryption and other security measures, and others.

BRIEF DESCRIPTION OF THE DRAWINGS

0008The drawings, when considered in connection with the following description, are presented for the purpose of facilitating an understanding of the subject matter sought to be protected.

0009<figref idref="DRAWINGS">FIG. 1</figref> is a diagrammatic representation of the parties and apparatus of the novel system; and

0010<figref idref="DRAWINGS">FIG. 2</figref> is a block diagram summarizing steps of a method of conducting transactions using the novel system.

DETAILED DESCRIPTION

0011<figref idref="DRAWINGS">FIG. 1</figref> of the drawings depicts physical apparatus which may come into play in a system of conducting commercial financial transactions among consumers, vendors, and the national banking system. The system functionally brings together at least one consumer <b>10</b> having a portable, internet enabled telecommunications device having data entry and data receiving capability, which will be referred to hereinafter generically as a smartphone <b>12</b>, and at least one vendor having a payment data processor disposed to receive and transmit data wirelessly pertaining to commercial financial transactions related to commercial products sold by the vendor. In <figref idref="DRAWINGS">FIG. 1</figref>, the vendor may be for example any of conventional retailers or stores <b>14</b><i>a, </i>internet based merchants <b>14</b><i>b, </i>motor fuel retailers <b>14</b><i>c, </i>wholesalers <b>14</b><i>d, </i>industrial entities <b>14</b><i>e, </i>providers of professional services such as a doctor <b>14</b><i>f </i>and a lawyer <b>14</b><i>g, </i>an agency <b>14</b><i>h </i>providing services such as property management, a provider of lodging such as a hotel <b>14</b><i>i, </i>a provider <b>14</b><i>j </i>of office space, an institution such as a school <b>14</b><i>k, </i>or an agricultural facility <b>14</b><i>l. </i>The above are only representative of many types of vendors of goods or services or both. Hereinafter, vendors will be referred to in the singular as a vendor <b>14</b>, although obviously many vendors such as the vendors <b>14</b><i>a </i>. . . <b>14</b><i>j </i>and others may utilize the novel system.

0012It should also be mentioned here that although commercial transactions conducted with the vendor <b>14</b> are referred to in terms of sales, other types of transactions such as leases and rental of goods and properties may enjoy the benefits of the novel system. Hence the term “sale” will be understood to encompass leases and rentals.

0013The smartphone <b>12</b> is set forth as an advantageous form of portable, internet enabled telecommunications device, but need not be limited to the form depicted. The smartphone <b>12</b> may take the form of personal computers, desktop computers, laptop computers, tablet computers, or any suitable telecommunications device, including, but not limited to, VoIP telephones, smart telephones or wireless devices, such as cellular telephones, personal digital assistants (PDA), communications enabled mp3 players, etc.

0014A vendor <b>14</b> may have a physical presence such as a store such as <b>14</b><i>a </i>and may have a point of sale data entry device or electronic terminal such as a cash register (not separately shown), which may comprise a data processor, memory, and have data entry and telecommunications capability and may be internet enabled for example. The electronic terminal ma be located at the physical point of sale of the vendor <b>14</b>, such as at a retail store such as the retail store <b>14</b><i>a. </i>Although these characteristics of the vendor point of sale data entry device are desirable, none of these characteristics of the vendor point of sale data entry device is critical to the invention. By contrast, the telecommunications capability of the smartphone <b>12</b> is critical to the invention.

0015Because funds are electronically transferred, the consumer <b>10</b> may have a financial institution such as a consumer bank <b>16</b> having a financial account serving the consumer <b>10</b> enabling funds to be transferred in payment of purchases from the vendor <b>14</b>. For his part, the vendor <b>14</b> may have a financial institution such as a vendor bank <b>18</b> disposed to electronically accept payments and generate virtual receipts, electronic reports related to purchases and financial and other details related to the purchases. The consumer bank <b>16</b> and the vendor bank <b>18</b> preferably each comprising a data processor, memory, and apparatus for transmitting and receiving wireless communications, and to receive, record, process, and transmit data wirelessly.

0016A gateway <b>20</b> serves to connect communications among the smartphone <b>12</b>, the vendor <b>14</b>, the consumer bank <b>16</b>, the vendor bank <b>18</b>, and involved additional parties such as the Federal Reserve System <b>22</b>. The gateway <b>20</b> may comprise a remote transaction server <b>26</b> including a database stored in memory (the database and memory are collectively indicated by a reference numeral <b>28</b>) and associated telecommunications apparatus (neither separately shown) for transmitting and receiving wireless communications, and to receive, record, process, and transmit data pertaining to commercial financial transactions wirelessly.

0017The function of the gateway <b>20</b> may be performed by a supervisory party separate from the vendor <b>14</b>, either of the banks <b>16</b> or <b>18</b>, or the Federal Reserve System <b>22</b>. For example, the supervisory party may provide its services as a commercial service to which a vendor <b>14</b> subscribes for example. Preferably, the gateway <b>20</b> may have a security facility <b>24</b> for securing telecommunications among the participants of the system of the present invention. The security facility <b>24</b> will be understood to encompass software and data processing apparatus as necessary to accomplish encryption of electronic messages and other security measures that may be desirable.

0018Other functions that may be provided using software based and other facilities by the gateway <b>20</b> may include an archive <b>30</b>, a diagnostic facility <b>32</b>, and an administrative support facility <b>34</b>. These facilities <b>30</b>, <b>32</b>, <b>34</b> will also be understood to encompass software and data processing apparatus necessary to accomplish their intended functions. The facilities <b>24</b>, <b>30</b>, <b>32</b>, and <b>34</b> may be conventional, known, and therefore need not be detailed further herein.

0019The gateway <b>20</b> may be configured to communicate payment instructions to the either or both of the consumer bank <b>16</b> and the vendor bank <b>18</b>, and the Federal Reserve System <b>22</b>. The gateway <b>20</b> may be configured to verify the authenticity of the consumer employing any suitable technique known in the art, including but not limited to passwords, cookies, biometric verification or any other suitable technique or means. The gateway <b>20</b> may be configured to verify payment and notify the vendor <b>14</b> directly or through the vendor bank <b>18</b> that it has received payment instructions from the consumer <b>10</b> (e.g., through the smartphone <b>12</b>). The gateway <b>20</b> may also be configured to securely coordinate electronic payment from the consumer bank <b>16</b> to the vendor bank <b>18</b>. The gateway <b>20</b> may coordinate payments in any suitable manner. In one non-limiting example, the gateway <b>20</b> may employ existing credit card payment infrastructure, ACH, Check<b>21</b>, or any other suitable technique and/or infrastructure.

0020The gateway <b>20</b> may also provide output files or otherwise generate bookkeeping materials for the consumer <b>10</b> and/or the vendor <b>14</b>. Illustrative transaction management and reporting options include, without limitation, Conversion Only, Verification with Conversion; Guarantee with Conversion, output files, return notification, returns re-presentment, retrieval request, refunds, credits, eChecks and statistic showing consumer product preferences, etc.

0021As shown in <figref idref="DRAWINGS">FIG. 1</figref>, the gateway <b>20</b> may include a memory and a processor to accommodate the forgoing. However, it will be appreciated that the forgoing may be implemented in hardware, software, or a suitable combination of hardware and software, and which can be one or more software systems operating on a general purpose server platform. As used herein, a hardware system can include discrete semiconductor devices, an application-specific integrated circuit, a field programmable gate array or other suitable devices. A software system can include one or more objects, agents, threads, lines of code, subroutines, separate software applications, user-readable (source) code, machine-readable (object) code, two or more lines of code in two or more corresponding software applications, databases, or other suitable software architectures. In one exemplary embodiment, a software system can include one or more lines of code in a general purpose software application, such as an operating system, and one or more lines of code in a specific purpose software application.

0022Wireless communication referred to herein may include both wireless communications and also hardwired links, and need not be exclusively wireless. Wireless communications may utilize any known and used type of communications, including for example fiber optics, cable, DSL, telephone lines, and other similar connections. Wireless communications will be understood to include where desired any number of networks capable of providing communications between the gateway <b>20</b>, the smartphone <b>12</b>, the Federal Reserve System <b>22</b>, the consumer bank <b>16</b> and the vendor bank <b>18</b>, and any vendor <b>20</b>. For example, the communications network may be one or more, or any combination of, wireless networks, data or packet networks, publicly switched telephone networks (PSTN), etc.

0023With the apparatus which may be utilized by the novel system having mostly been described, and with reference to <figref idref="DRAWINGS">FIG. 2</figref>, the invention may be thought of as a method <b>100</b> of conducting commercial financial transactions among consumers such as the consumer <b>10</b>, vendors such as the vendor <b>14</b>, and the national banking system, which may comprise the consumer bank <b>16</b>, the vendor bank <b>18</b>, and the Federal Reserve System <b>22</b> at a minimum, utilizing a gateway such as the gateway <b>20</b>. The method <b>100</b> may comprise:

0024a step <b>102</b> of conducting a commercial financial transaction by the consumer such as the consumer <b>10</b>, wherein a purchase is made by the consumer <b>10</b> for a commercial product of the vendor, such as the vendor <b>14</b>;

0025a step <b>104</b> of generating a payment authorization in payment of the purchase by the consumer <b>10</b> on the portable, internet enabled telecommunications device such as the smartphone <b>12</b> and transmitting the payment authorization to the gateway <b>20</b>;

0026a step <b>106</b> of receiving the payment authorization by the gateway <b>20</b>;

0027a step <b>108</b> of transmitting the payment authorization wirelessly to the consumer bank <b>16</b> by the gateway <b>20</b> responsively to receiving the payment authorization;

0028a step <b>110</b> of effecting payment to the vendor <b>14</b> by the consumer bank <b>16</b>;

0029a step <b>112</b> of generating a payment report by the gateway <b>20</b>, wherein the payment report contains data identifying the purchase, the consumer <b>10</b>, and the amount paid by the consumer <b>10</b>, and transmitting the payment report to the vendor <b>10</b>; and

0030a step <b>114</b> of generating a virtual receipt and transmitting the virtual receipt to the portable, internet enabled telecommunications device such as the smartphone <b>12</b> of the consumer <b>10</b>.

0031In the above method <b>100</b>, it should be noted that each step is effected automatically, predicated on performance of one or more prior steps. That is, no participant such as the consumer <b>10</b>, the vendor <b>14</b>, the consumer bank <b>16</b>, or the vendor bank <b>18</b> must initiate a command or other input to keep the process going until the final step such as the step <b>114</b> is performed. The result of this method <b>100</b> is that the commercial transaction may be completed seamlessly, with the consumer <b>10</b> being able to initiate and complete the transaction easily using the smartphone <b>12</b>. At the same time, necessary or desirable feedback to the vendor <b>14</b> is also seamlessly accomplished.

0032It will also be understood that all references to transmitting data to a party such as to the consumer <b>10</b> or to the vendor <b>14</b> signify that data is transmitted to the data processing apparatus operated by that party.

0033The method <b>100</b> may also comprise a step <b>116</b> of including a promotional feature as part of the commercial financial transaction, wherein value is credited to the consumer <b>10</b> automatically, and wherein the value comprises a discount which is not available to the general public and which is based on prior purchases by the consumer <b>10</b> from the vendor <b>14</b>. Such discounts have been known as loyalty discounts or benefits in conventional commercial practice.

0034The method <b>100</b> may comprise a step <b>118</b> of including a promotional feature as part of the commercial financial transaction, wherein value is credited to the consumer automatically, and wherein the value comprises a predetermined, fixed dollar amount which is not available to the general public and which is based on prior purchases by the consumer <b>10</b> from the vendor <b>14</b>. This credited value may be a loyalty benefit or may be generated by another criterion. In a variation on the step <b>118</b>, the method <b>100</b> may comprise a step <b>120</b> of including a promotional feature as part of the commercial financial transaction, wherein value is credited to the consumer automatically, and the credited value comprises a predetermined percentage of the purchase price which is not available to the general public and which is based on prior purchases by the consumer from the vendor.

0035The method <b>100</b> may comprise a step <b>122</b> of including a promotional feature as part of the commercial financial transaction, wherein value is credited to the consumer automatically, and the value is also offered to the general public as a discount applicable for a predetermined amount of time. The benefit of the step <b>122</b> is assuring existing customers that they will not be denied discounts which are offered to the general public. In an example of how this could be implemented, if a hypothetical discount were advertised by the vendor <b>14</b> and predicated upon customers bringing a printed coupon to the retail store, then existing customers unaware of the condition of bringing a coupon might be denied the discount. The step <b>122</b> prevents denial of such a discount to existing customers, and overcomes potential resentment that might arise from such denial.

0036As presented herein, promotional features have been described as taking the form of monetary value. Promotional features could take other forms, such as conferring privileges to the recipient, such as authorizing entry to or participation in specified events that are otherwise restricted from participation, or may otherwise take the form on non-monetary value.

0037The method <b>100</b> may comprise a step <b>124</b> of, responsively to the purchase by the consumer <b>10</b>, downloading financial data pertaining to at least one purchase by the consumer <b>10</b> from the vendor <b>14</b> to a bookkeeping program maintained on a personal computing device <b>36</b> operated by the consumer <b>10</b>. It should be noted that this may be in place of or in addition to virtual receipts uploaded to the smartphone <b>10</b>.

0038The method <b>100</b> may comprise a step <b>126</b> of having the consumer <b>10</b> enter an input to the smartphone <b>12</b> to implement an installment purchase by the consumer <b>10</b> from the vendor <b>14</b>, wherein periodic payments are made to the vendor <b>14</b> until the dollar amount of the purchase price is satisfied by the sum of the periodic payments. This option may be regarded as implementing an installment purchase wherein merchandise or service is rendered to the consumer <b>10</b> immediately or rendered after payment is complete. The latter option is widely known as layaway sales.

0039The method <b>100</b> may comprise a step <b>128</b> of having the consumer <b>10</b> enter an input to the smartphone <b>12</b> to implement a posting to a social network site, such as Twitter®, Facebook®, and Google+1®, wherein the posting comprises data reflecting at least one detail of a purchase made by the consumer from the vendor. For example, the consumer <b>10</b> may post a particularly advantageous purchase price, which might serve as free advertising to the vendor <b>14</b>. In another example, an image of an item acquired in the purchase may be posted, again affording the vendor <b>14</b> free advertising. The step <b>128</b> may comprise a further step <b>130</b> of identifying a purchase made by the consumer <b>10</b> from the vendor <b>14</b> as being regarded by the consumer <b>10</b> as providing a competitively favorable price to the consumer <b>10</b>.

0040The method <b>100</b> may comprise a step <b>132</b> of having the consumer <b>10</b> enter an input to the smartphone <b>12</b> to implement issuance of a virtual gift card (not shown), and a further step <b>134</b> of automatically transmitting the virtual gift card to a portable, internet enabled data processing device operated by someone known to the consumer <b>10</b>. The gift card could take the form of a printable file, or of an image which when displayed on the data processing device of the person known to the consumer <b>10</b>, would qualify that person for a credit applicable to a purchase.

0041The method <b>100</b> may comprise a step <b>136</b> of having the consumer <b>10</b> enter an input to the smartphone <b>12</b> to wirelessly establish a credit account with a lender (not shown), and a step <b>138</b> of wirelessly and automatically accessing funds from the credit account established with the lender to fund the commercial financial transaction conducted by the consumer <b>10</b>.

0042The method <b>100</b> may comprise a step <b>140</b> of automatically issuing virtual statements pertaining to the credit account established in the step <b>136</b>, and transmitting the issued virtual statements wirelessly to the consumer <b>10</b>.

0043The method <b>100</b> may comprise a step <b>142</b> of wirelessly debiting funds accessed by the consumer <b>10</b> from the account established for the consumer <b>10</b>, or alternatively stated, automatically and wirelessly updating the account such that any balance owing reflects purchases in near real time. As employed herein, “near real time” signifies a time period not exceeding about three seconds.

0044The method <b>100</b> may comprise a step <b>144</b> of issuing a reminder notice and transmitting the reminder notice wirelessly to the consumer <b>10</b>.

0045The system features regarding coupons, layaway accounts, rewards, loyalty, and an added feature of advertising and marketing are shown in <figref idref="DRAWINGS">FIG. 1</figref> as being capable of being associated with and generated by the gateway <b>20</b>, and more particularly by the transaction server <b>26</b>, although these features could be implemented through other agency.

0046Integration of the above steps into a single, seamless process gives the consumer <b>10</b> the ability to track the status of positive asset accounts such as checking accounts, savings accounts, and debit accounts) and also of negative asset accounts, such as credit accounts in near real time. Also, the entire system of banking and payments may proceed to transfer payments responsively to payment authorization so as to complete transaction and financial transfers in near real time.

0047While the present disclosure has been described in connection with what is considered the most practical and preferred embodiment, it is understood that this disclosure is not limited to the disclosed embodiments, but is intended to cover various arrangements included within the spirit and scope of the broadest interpretation so as to encompass all such modifications and equivalent arrangements.